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Top Trades for Mon, 13 Feb 2017 12:51 – XOM, QCOM & SVU

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Top Trades for Mon, 13 Feb 2017 12:51 – XOM, QCOM & SVU
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Long-Term Portfolio Additions from the Conference:

  • Sell 5 XOM 2019 $80 puts for $8.50 ($4,250)
  • Buy 10 XOM 2019 $70 calls  for $15.20 ($15,200)
  • Sell 10 XOM 2019 $85 calls for $6.25 ($6,250)

Net on this $15,000 spread is $4,700 so potential upside is $11,300 (240%) and ToS says $3,500 in margin so it's pretty efficient.  

Sell 10 QCOM 2019 $50 puts for $7.10 ($7,100)

Buy 10 QCOM 2019 $45 calls for $12.80 ($12,800)

Sell 10 QCOM 2019 $55 calls for $7.20 ($7,200)

Net on this trade is a $1,500 credit so worst case is owning 1,000 QCOM for net $48.50 ($48,500), which is fine as they pay a $2.12 dividend.  Meanwhile, the upside is net $11,500 (1,000%), which is way better than 2 years worth of dividends so it's a nice way to start.  Net margin just $4,000 – also very efficient.

  • SVU Sell 50 2019 $3.50 puts at 0.70 ($3,500)
  • SVU Buy 50 2019 $2 calls at $2.20 ($11,000)
  • SVU Sell 50 2019 $3.50 calls at $1.35 ($6,750)

That's net $750 on the net $7,500 so upside is $6,750 (900%) at the current price and the margin on ToS is only $2K so nice, efficient trade.